Gold Coast Property Market Crash? Why 2024 Might Be a Buyer’s Paradise!

Monday 5th September 2024

In recent months, the property market has been experiencing notable changes, particularly in the Gold Coast region. As August 2024 wraps up, it's clear that the surge in new property listings is starting to impact both the time it takes to sell a home and the prices being achieved.

August 2024: A Record-Breaking Month

The Gold Coast witnessed the highest number of new listings during a winter month since 2019. In August 2024, the number of new listings, excluding developer stock, soared to 1,479—a significant jump from the 1,112 recorded in August 2023. This increase has led to a shift in market conditions, as the supply of homes outpaces the demand.

Understanding Absorption Rates

Absorption rates, a key indicator in the property market, measure the relationship between the number of new listings and the number of sales in an area. When sales exceed new listings, market conditions favor sellers, often leading to price increases. Conversely, when new listings outnumber sales, the market shifts in favor of buyers.

In August 2024, the Gold Coast recorded 957 sales (excluding development stock), while 1,479 new listings came onto the market. This disparity is the largest seen since January 2023, suggesting that the balance is tilting towards buyers. It indicates that buyers may have more negotiating power as the market becomes more saturated with available properties.

Media Focus vs. Market Reality

Despite these changing conditions, media reports often emphasize price growth rather than acknowledging the softening market dynamics. This is partly because sales data is typically recorded months after a property goes under contract, leading to a delay in reflecting current market trends.

For instance, recent reports highlight continued price rises across Queensland, with Brisbane and the Gold Coast leading the charge. According to PropTrack's latest Home Price Index, Brisbane's median house price increased by 13.38% to $964,000, while the Gold Coast saw a 12.29% annual rise to $962,000. These figures, though impressive, don't fully capture the shift towards a buyer's market as indicated by the latest absorption rates.

What's Next for the Gold Coast Property Market?

As we move into spring, traditionally a busy time for the property market, it's likely that we'll see even more listings and increased buyer activity. However, the current trend of more listings than sales suggests that the market could remain favorable for buyers in the short term.

Real estate agents and investors should keep a close eye on absorption rates and other market indicators to navigate this evolving landscape. For sellers, it's essential to price properties competitively and be prepared for longer selling times. Buyers, on the other hand, may find themselves in a stronger position to negotiate and secure better deals.

Final Thoughts

The Gold Coast property market is entering a new phase, where the influx of new listings is beginning to alter the balance of power between buyers and sellers. While media reports continue to highlight price growth, the underlying market conditions suggest that we could be on the cusp of a more buyer-friendly environment. Whether you're buying, selling, or investing, staying informed and adaptable will be key to success in this dynamic market.